Tax and relocation allowances help please.

gazza26

Is there anybody out there that can help me. My other half has just got a new job that requires him to move closer to the company base. However we currently live very close to a really good school and dont want to move as the schools are not so hot where my OH will have to move to. What we thought we would do would be to get a small flat/studio for my OH to live in during the week and he would come home at weekends and we could go there during the school holidays and occasional weekends. My husband could also come home during the week as it is commutable but too much to be doing everyday. The company has offered him a relocation package to help with the expense of buying fees, accomodation while we are looking etc up to the amount of £8000 which I believe to be set by HMRC and this would be tax free. Althougth it says nothing in the company relocation policy that this £8000 is only payable if you relocate your main residence, it sort of implies this on HMRC site that our main residence has to be the marital home. We understand that we will have to pay capital gains when we sell the flat and thats fine but we want to maximise the benefit of relocation package as money is a wee bit tight because of the new job. As it is we think we will have to pay tax on any of relocation allowances we claim. Can anyone advise us if there is a way to buy this flat and legally not have to pay tax on the relocation expenses. We thought about putting the flat solely in my OH name but it all seems to come back to the fact that his main residence even if he spends more time elsewhere is where his spouse is! Is there any out there that has any knowledge of this subject I would be very grateful for any advise on this subject. Thanks:(